Influencer Marketing
There have been many changes in the world of marketing in the last decade. It’s hard to keep up. One marketing method that has became extremely popular, especially this year, is one that intrigues me the most ~ influencer marketing. Influencer marketing is known as “the producer economy.” Initially, when influencer marketing was first introduced, it was predicted to be very temporary because people though it would be ineffective and eventually die out. This was because engagement rates dropped significantly between 2019 and 2020. I am very happy to say that influencer marketing did not die out. The predictions were incorrect, and today influencer marketing is stronger than ever and still evolving.
My personal favorite social media platform very quickly became the strongest platform for influencers to market products. I’m sure we all can guess which platform this is ~
TikTok.
TikTok drives some of the strongest engagement numbers across the board, causing imitations from other platforms such as Instagram. This app’s explosive growth was fueled by young adults, but gained cross-generational appeal. This consumer shift will likely drive a shift in brand spending and sponsored content partnerships will become more common on the platform.
93% of marketers use influencer marketing as a part of their marketing strategy and believe that it is effective. That’s an insane percentage, and an unbelievable jump from the percentage of people that thought it was effective just two years ago. Influencer marketing is predicted to reach about $4.14 billion dollars in spending this year in the US. Growth is estimated to continue in the double-digits until 2023, when spending on influencer marketing campaigns will approach $5 billion dollars. As for the global sending on influencer marketing, that number is at a whopping $13.8 billion dollars, predicted to reach $15 billion by the end of this year.
I believe that the COVID19 pandemic influenced the surge of influencer marketing. The pandemic proved the importance of a digital presence in the marketing world. We will see a continuing shift towards social commerce as consumers continue to engage more in online shopping.
With the latest developments in technology, I think that influencers could even take over the entire marketing funnel. On the development front, Instagram recently announced a tool that allows creators to earn commissions for purchases they drive through the app. I personally don’t like Instagram’s latest developments because I think they need to choose their focus. No longer is Instagram an app solely for social media ~ it’s now a shopping app, too. I think they should make a separate app for both categories, rather than having a jumbled mess of both that drives people away. I can’t stand getting on Instagram because my feed isn’t even filled with people I follow. It’s cluttered with “you might like…” and “sponsored” and “suggested for you.” Every third or fourth post is shopping add. It doesn’t feel like organic social media anymore.
Unfortunately, TikTok is following a similar path as they have began promoting TikTok Shopping and their expanded partnership with Shopify. With these platforms pushing for in-app shopping, influencers will become the entire marketing funnel. I’m conflicted when it comes to how influencer marketing affects my personal purchasing decisions. There are times I was persuaded to buy the product being promoted, and there are other times where I thought, I wonder if they even tried this product. Is this legit, or are they just promoting this just to get a check? That being said, I haven’t actually had any bad experiences myself when purchasing products that were promoted by an influencer I liked. So I trust it more than I don’t trust it, if that makes any sense.
On the downside of influencer marketing, there are definitely some risks. Influencer marketing can sometimes be risky to your brand. Controversial actions of some influencers have been known to damage the credibility of both the influencer and the brand. I’m sure some of us remember Kendall Jenner’s controversy with the Pepsi Commercial. The commercial was accused of capitalizing on our current political and social climate in ways that felt particularly uneasy. In a statement provided to Teen Vogue, an official spokesperson for Pepsi explained: “The creative showcases a moment of unity, and a point where multiple storylines converge in the final advert. It depicts various groups of people embracing a spontaneous moment, and showcasing Pepsi’s brand rallying cry to 'Live For Now,' in an exploration of what that truly means to live life unbounded, unfiltered and uninhibited.” However, it can be argued that these themes of spontaneity and unity could easily be depicted without co-opting the resistance in the process, or without trivializing the important protests that have been taking place over the past few months. After all, protests aren't necessarily solely about unity, but rather about justice and fighting for what's right.
As a consumer, what is your experience with influencer marketing? What would you require of an influencer if they were to market your products?
Sources:
https://www.teenvogue.com/story/pepsi-commercial-kendall-jenner-reaction
https://www.forbes.com/sites/forbesagencycouncil/2020/08/19/is-influencer-marketing-on-the-decline/?sh=5ffd0b44198e
https://www.marketingdive.com/news/how-the-producer-economy-is-changing-influencer-marketing/ 618562/
https://www.insiderintelligence.com/insights/us-influencer-marketing-spending/
https://www.oberlo.com/blog/influencer-marketing-statistics
